SC Video Poker Kingpin Sentenced to Pay $1 Million to Federal Government

Background of the Case
US District Judge Sherri Lydon has sentenced 68-year-old F.M. to six months in prison for operating an illegal gambling business near South Carolina’s capital. In addition to the prison term, F.M. agreed to forfeit $1 million as part of the legal proceedings.
Details of the Undercover Investigation
Federal prosecutors revealed that F.M., a notable businessman in Lexington County, led a substantial gambling operation. This enterprise featured numerous illegal video poker machines, reportedly generating up to $100,000 weekly. The gambling activity ran daily from 11 a.m. until 2 a.m., requiring two worker shifts to maintain operation.
The investigation began following tips about gambling activities at F.M.’s property. Undercover agents conducted surveillance in April and June 2023, playing the machines undercover to collect evidence.
The property contained more than 25 Pot O’ Gold slot machines along with other video gambling terminals. These machines offered games such as Joker Poker, Jacks or Better, Keno, Deuces Wild, and Shamrock Ts — a game favored in the southern United States, similar to popular mobile casino games.
Defense Arguments
F.M.’s legal team, led by Jim Griffin and Victor Li, requested a sentence without incarceration. They argued that there was no evidence connecting F.M.’s operation to organized crime, drug trafficking, money laundering, or other related offenses commonly linked to illegal gambling.
The defense described the operation as a local business rather than a sophisticated criminal network, acknowledging the illegality but emphasizing the absence of wider criminal ties.
Prosecution and Sentencing
The prosecutors pushed for a harsher penalty, seeking at least a 12-month prison term due to the operation’s size and profitability. Assistant U.S. Attorney Lothrop Morris cited the involvement of at least five employees in the enterprise.
F.M. had a prior record of illegal gambling charges, including arrests in 1993 for bookmaking and in 2008 for activities at a gaming house.
The law provides for a maximum prison sentence of five years for conspiracy to conduct illegal gambling.
Judge Lydon balanced the evidence and ultimately sentenced F.M. to six months in federal prison. The $1 million forfeiture was ordered to be paid to the Secret Service as part of the judgment.